Microsoft or EA to buy Sega?
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Coming from the anouncement that Sega was to merge with Sammy, Microsoft and EA both appear to now be after Sega. I personally do not want either of those companies to obtain Sega. If Sega stays as it is or gets bought out by Nintendo I’ll be happy. Read the press release below.
TOKYO – Sega Corp., grappling with a plan to merge with a pinball-machine company, now has two huge potential suitors mulling their own bids for the ailing videogame maker: Microsoft Corp.and videogame giant Electronic Arts Inc., Friday’s Wall Street Journal reported.
The two U.S. companies are separately exploring the possibility of buying all or parts of Sega, according to people familiar with the situation. These people stressed that the two potential suitors have yet to hold formal talks with Sega, and no deal appears imminent.
Still, either company could emerge as a white knight to grab Sega from a plan to combine with Sammy Corp., the pinball maker, a deal that appears rife with difficulties and internal opposition. Sega, once a leader in the videogame business, has stopped making its own game machines and now creates titles for Microsoft’s Xbox (news - web sites), Nintendo (news - web sites) Co.’s consoles and Sony Corp (news - web sites).’s market-leading PlayStation 2 (news - web sites).
For Microsoft, a deal with Sega could give its 16-month-old Xbox access to exclusive game titles – analysts say the software giant lacks enough of them to make the Xbox a long-term success. A potential jewel for Microsoft would be Sega’s Visual Concepts, a U.S. maker of sports games, one of the most popular and fast-growing game categories.
Acquiring Sega also could give Microsoft a strong boost in Japan, where a dearth of Xbox titles that appeal to Japanese gamers has left Microsoft with a vast stock of unsold machines.
Sega also would give Electronic Arts, of Redwood City, Calif., a boost in Japan, where it has been expanding. And a deal would remove a competitor: Sega’s Visual Concepts competes with Electronic Arts in sports games, albeit with modest success.
Spokespeople at Microsoft and Electronic Arts declined to comment. A Sega spokeswoman said the company hasn’t been approached by suitors.
Meanwhile, Sega’s financial plight is deepening: As early as today, the company is expected to announce a reorganization of its U.S. operations that will involve shedding perhaps 20% of the American work force of 450, according to people familiar with the plan. The cuts, which are expected to focus on sales and marketing positions at Sega of America and at Sega’s online unit, are part of a global restructuring that could lead to additional layoffs, one person said.
Source: The Wall Street Journal
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